Security code

8th FP (ended June 2021)

S-24 CS Hiji-machi Dai-ni Power Plant

Asset Manager
Canadian Solar Asset management K.K.

Presentation Materials
Canadian Solar Infrastructure Fund, Inc.

Table of Contents
1. Financial Highlights

・・・・・・・・・ 2

Financial Highlights of 8th FP ・・・・・・・・・・・・・・

3

Portfolio Performance ・・・・・・・・・・・・・・・・・

4

Asset List (1) ・・・・・・・・・・・・・・・・・・・・・
Asset List (2) ・・・・・・・・・・・・・・・・・・・・・

8
10

2. Major Topics ・・・・・・・・・・・・・ 12
Summary of Public Offering in March 2021 ・・・・・・・
Newly Acquired Assets in 8th FP・・・・・・・・・・・・・
AUM Snapshot ・・・・・・・・・・・・・・・・・・・・・
Portfolio Diversification ・・・・・・・・・・・・・・・・・

13
14
15
16

Unit Price Performance ・・・・・・・・・・・・・・・・・ 17
Credit Rating and Issuance of Green Bonds ・・・・・・・ 18

Debt Profile (1) ・・・・・・・・・・・・・・・・・・・・

19

Debt Profile (2) ・・・・・・・・・・・・・・・・・・・・
Bank Formation ・・・・・・・・・・・・・・・・・・・・
Impact of Curtailment by Kyushu ElectricPower ・・・・・・・・・・・・・・・・・・・・・・・・・
Onlinization Related to Curtailment ・・・・・・・・・・・
ESG Initiatives (UN PRI / Wholesale Electricity
Supply) ・・・・・・・・・・・・・・・・・・・・・・・・
ESG Initiatives (Green Finance) ・・・・・・・・・・・・・
Government’s Proactive Stance for Carbon
Neutrality ・・・・・・・・・・・・・・・・・・・・・・・
Main Points of the Revised Renewable Energy Act ・・・・
Discussions on Power Producer-Side Wheeling Charge・・

20
21
22
23
24
25
26
27
28

3. Management Policy・・・・・・・・・・ 29
9th, 10th & 11th FP Business Forecast ・・・・・・・・・
Historical and Forecasted Dividend・・・・・・・・・・・・
External Growth Strategy（Sponsor Pipeline） ・・・・・・
Sponsor Pipeline Map ・・・・・・・・・・・・・・・・・・

30
31
32
33

Appendix ・・・・・・・・・・・・・・・ 34
Overview of Canadian Solar Group ・・・・・・・・・・・ 35
Canadian Solar Group’s Vertically-integrated Business
Model ・・・・・・・・・・・・・・・・・・・・・・・・・
Organizational Structure ・・・・・・・・・・・・・・・・
ESG Initiatives: Environment ・・・・・・・・・・・・・・
ESG Initiatives: Social・・・・・・・・・・・・・・・・・・
ESG Initiatives: Governance ・・・・・・・・・・・・・・・
Status of Unitholders ・・・・・・・・・・・・・・・・・・
Balance Sheet for 8th FP・・・・・・・・・・・・・・・・・
Statement of Income for 8th FP ・・・・・・・・・・・・・
Portfolio Assets ・・・・・・・・・・・・・・・・・・・・・
Leasing Structure based on Basic and Valuable Rent ・・・
Stable and Balanced Cash Flow Distribution Policy
Supported by FIT System ・・・・・・・・・・・・・・・・
Characteristics of PV Plant Revenue ・・・・・・・・・・・
History of CSIF ・・・・・・・・・・・・・・・・・・・・・
Outlook on Japan’s Renewable Energy Mix・・・・・・・・
Disclaimer ・・・・・・・・・・・・・・・・・・・・・・・

36
37
38
39
40
41
42
43
44
46
47
48
49
50
51

1

1. Financial Highlights

2

Financial highlights of 8 th FP◼
◼
◼

Operating revenues slightly exceeded the forecast due to actual energy output of the portfolio which was
higher than the projected output though the curtailments in Kyushu area affected considerably
Operating income also exceeded the forecast by less operating expenses than the forecast mainly in insurance
premium, depreciation and appraisal cost. Additionally, insurance proceeds and refund of property tax booked
as non-operating income made the income before income taxes also exceeding the projection.
As a result, the net income exceeded the initial forecast substantially and DPU (excl. distributions in excess ofearnings) increased by JPY 569, while DPU in excess of earnings decreased by the same amount. JPY 3,700 of
distribution in total is unchanged
7th FP
Actual

8th FP (ended Jun. 2021)
Forecast@Feb.17,2021

Amendment@Jul.28,2021

ActualIncrease /(Decrease)(vs Forecast)Statement of Income Data
(million yen)
Operating revenues

2,413

3,337

3,425

3,425

88

Operating income

858

1,315

1,459

1,459

144

Income before income taxes

717

862

1,074

1,074

212

Net income

716

861

1,073

1,073

212

Distribution per unit (including
distributions in excess of earnings) (yen)

3,700

3,700

3,700

3,700

0

Distributions per unit (excluding
distributions in excess of earnings) (yen)

3,099

2,207

2,776

2,776

569

601

1,493

924

924

(569)

Distributions in excess of earnings
per unit (yen)Main difference (vs. forecast)
Operatingrevenues

Increase in variable
rent

Operatingexpenses

Decrease in;Insurance premium
Depreciation
Appraisal cost

Insurance proceeds
Non-operating
Refund of property
income
tax

88

10
34
９
79
11

3

Portfolio Performance◼ 8 th FP actual energy output ÷ projected energy output = 100.49％(6 th FP (corresponding period of the previous year): 98.90%)◼ Total energy output
Projected

Actual(MWh)
25,00098.6%

20,00010,000122.1%

100.7%

15,0007,868

18,164

7,927

8,716

17,914102.7%
20,87480.2%

21,452113.1%

21,257
17,066

17,834

20,174

10,645

5,000
0

Jan.

Feb.

Mar.

Apr.

May

Jun.

◼ Energy output by projectS-01 CS Shibushi-shi
Power Plant

(MWh)
150

(MWh)
150

100

100

50

50

0
S-03 CS Kasama-shi
Power Plant

S-02 CS Isa-shi
Power Plant

0
Jan.

Feb.

Mar.

Apr.

May

Jun.
S-04 CS Isa-shi Dai-niPower Plant

(MWh)
300

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

(MWh)
300
200

200

100

100
0

Jan.

0
Jan.

Feb.

Mar.

Apr.

May

Jun.

4

Portfolio Performance
S-05 CS Yusui-cho
Power Plant

100

100
Jan.

Feb.

Mar.

Apr.

May

0

Jun.

(MWh)

S-08 CS Hiji-machi
Power Plant

300

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

400
300

100

100

200
0
Jan.

Feb.

Mar.

Apr.

May

Jun.
S-10 CS Minami(MWh)Shimabara-shi
Power Plant (East & West)

(MWh)
300

600

200

400

100

200
0

Jan.

Feb.

Mar.

Apr.

May

Jun.

S-12 CS Kannami-cho
Power Plant

(MWh)
400

(MWh)
200

300

150

200

100

100

50

0

Jan.

(MWh)

200

0

S-11 CS Minano-machi
Power Plant

300
200

0

S-09 CS Ashikita-machi
Power Plant

(MWh)

200

0

S-07 CS Kasama-shi
Dai-ni Power Plant

S-06 CS Isa-shi Dai-sanPower Plant

(MWh)
300

0
Jan.

Feb.

Mar.

Apr.

May

Jun.

5

Portfolio Performance
S-13 CS Mashiki-machi
Power Plant

S-14 CS Koriyama-shi
Power Plant

(MWh)
6,000

(MWh)
100
75

4,000

50

25

2,000
0
S-15 CS Tsuyama-shi
Power Plant

0
Jan.

Feb.

Mar.

Apr.

May

Jun.

(MWh)

S-16 CS Ena-shi
Power Plant

300

100

100

S-17 CS Daisen-choPower Plant (A&B)

Mar.

Apr.

May

Jun.

(MWh)

0

3,000

150

2,000

100

1,000

50
Jan.

Feb.

Mar.

Apr.

May

Jun.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

0

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

S-20 CS Marumori-machi
Power Plant (MWh)

(MWh)
150

300

100

200

50
0

Apr.

S-18 CS Takayama-shi
Power Plant (MWh)

4,000

0

S-19 CS Misato-machi
Power Plant

Feb.

Mar.

300
200

Jan.

Feb.

(MWh)

200

0

Jan.

100
Jan.

Feb.

Mar.

Apr.

May

Jun.

0

6

Portfolio Performance
S-21 CS Izu-shi
Power Plant

S-22 CS Ishikari
Shinshinotsu-muraPower Plant

(MWh)
1,200

200
100

0

Jan.

Feb.

Mar.

Apr.

May

Jun.

0

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jan.

Feb.

Mar.

Apr.

May

Jun.

S-24 CS Hiji-machi Dai-ni (MWh)Power Plant 7500

(MWh)
150
100

5000

50

2500
0

0

S-25 CS Ogawara-machi
Power Plant

400
300

600

S-23 CS Osaki-shi
Kejonuma Power Plant

(MWh)

Jan.

Feb.

Mar.

Apr.

May

Jun.

(MWh)
1200
900
600

300
0

Jan.

Feb.

Mar.

Apr.

May

Jun.

7

Asset List (1) – Power Plant Data, Valuation and etc.
No.

Project nameLocation

FIT
Price
(yen)

Acquisition
Date

FIT Expiration

Land Rights

AcquisitionPrice(million yen)

Valuation
Price
Portfolio(million%yen)(Note)

Panel
Output(kW)

S-01

CS Shibushi-shi Power Plant

Shibushi-shi, Kagoshima

40

Oct. 31, 2017

Sep. 16, 2034

Ownership

540

510

0.64

1,224.00

S-02

CS Isa-shi Power Plant

Isa-shi, Kagoshima

40

Oct. 31, 2017

Jun. 8, 2035

Lease-hold

372

341

0.43

931.77

S-03

CS Kasama-shi Power Plant

Kasama-shi, Ibaraki

40

Oct. 31, 2017

Jun. 25, 2035

Ownership/Easement

907

950

1.20

2,127.84

S-04

CS Isa-shi Dai-ni Power Plant

Isa-shi, Kagoshima

36

Oct. 31, 2017

Jun. 28, 2035

Lease-hold

778

708

0.89

2,013.99

S-05

CS Yusui-cho Power Plant

Aira-gun, Kagoshima

36

Oct. 31, 2017

Aug. 20, 2035

Lease-hold

670

611

0.77

1,749.30

S-06

CS Isa-shi Dai-san Power Plant

Isa-shi, Kagoshima

40

Oct. 31, 2017

Sep. 15, 2035

Lease-hold

949

875

1.10

2,225.08

S-07

CS Kasama-shi Dai-ni Power Plant

Kasama-shi, Ibaraki

40

Oct. 31, 2017

Sep. 23, 2035

Lease-hold

850

825

1.04

2,103.75

S-08

CS Hiji-machi Power Plant

Hayami-gun, Oita

36

Oct. 31, 2017

Oct. 12, 2035

Lease-hold

1,029

945

1.19

2,574.99

S-09

CS Ashikita-machi Power Plant

Ashikita-gun, Kumamoto

40

Oct. 31, 2017

Dec. 10, 2035

Lease-hold

989

920

1.16

2,347.80

S-10

CS Minamishimabara-shi Power Plant Shimabara-shi, Nagasaki(East & West)40

Oct. 31, 2017

Dec. 24, 2035 (E)Jan. 28, 2036 (W)Lease-hold

1,733

1,656

2.09

3,928.86

S-11

CS Minano-machi Power Plant

Chichibu-gun, Saitama

32

Oct. 31, 2017

Dec. 6, 2036

Ownership

1,018

1,039

1.31

2,448.60

S-12

CS Kannami-cho Power Plant

Tagata-gun, Shizuoka

36

Oct. 31, 2017

Mar. 2, 2037

Surface rights

514

516

0.65

1,336.32

S-13

CS Mashiki-machi Power Plant

Kamimashiki-gun,
Kumamoto

36

Oct. 31, 2017

Jun. 1, 2037

Ownership/Easement

19,751

20,16325.51

47,692.62

S-14

CS Koriyama-shi Power Plant

Koriyama-shi, Fukushima

32

Feb. 1, 2018

Sep. 15, 2036

Ownership/Easement

246

233

0.29

636.00S-15

CS Tsuyama-shi Power Plant

Tsuyama-shi, Okayama

32

Feb. 1, 2018

Jun. 29, 2037

Ownership

746

713

0.90

1,930.50

S-16

CS Ena-shi Power Plant

Ena-shi, Gifu

32

Sep. 6, 2018

Sep. 12, 2037

Surface rights

757

765

0.96

2,124.20

S-17

CS Daisen-cho Power Plant(A)(B)

Saihaku-gun, Tottori

40

Sep. 6, 2018

Aug. 9, 2037

Surface rights/Leasehold/Easement

10,447

10,01012.66

27,302.40

S-18

CS Takayama-shi Power Plant

Takayama-shi, Gifu

32

Sep. 6, 2018

Oct. 9, 2037

Ownership/Easement

326

311

0.39

962.28

S-19

CS Misato-machi Power Plant

Kodama-gun, Saitama-ken

32

Mar. 1, 2019

Mar. 26, 2037

Ownership

470

433

0.54

1,082.00

S-20

CS Marumori-machi Power Plant

Igu-gun, Miyagi

36

Mar. 29, 2019

Jul. 12, 2038

Surfacerights/Easement

850

775

0.98

2,194.50(Note)“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers
Sustainability LLC (S01 – S18) and Ernst & Young Transaction Advisory Services Co., Ltd.(S-19 – S-25) in its project valuation reports
as of June 30, 2021.

8

Asset List (1) – Power Plant Data, Valuation and etc.
No.

Project nameLocation

FIT
Price
(yen)

Acquisition
Date

FIT Expiration

Land Rights

Acquisitio Valuationn Price
Price
Portfolio(million(million%yen)yen)(Note)

Panel
Output(kW)

S-21

CS Izu-shi Power Plant

Izu-shi, Shizuoka

36

Nov. 29, 2019Nov. 29, 2038

Surface rights

4,569

4,271

5.40

10,776.80

S-22

CS Ishikari Shinshinotsu-muraPower Plant

Ishikari-gun,
Hokkaido

24

Sep. 28, 2020

Jul. 15, 2039

Ownership

680

645

0.81

2,384.64

S-23

CS Osaki-shi Kejonuma Power
Plant

Osaki-shi, Kejonuma

21

Sep. 28, 2020

Jul. 21, 2039

Ownership

208

197

0.24

954.99S-24

CS Hiji-machi Dai-ni Power Plant

Hayami-gun, Oita

40

Mar. 8, 2021

Oct. 30, 2039

Ownership/Leasehold/Easement

27,851

27,87735.27

53,403.66

S-25

CS Ogawara-machi Power Plant

Shibata-gun, Miyagi

32

Mar. 8, 2021

Mar. 19, 2040

Ownership/Leasehold/Easement

2,745

2,744

3.47

7,515.35

80,001

79,037100.00183,973.12

Total(Note)“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers Sustainability LLC (S01 – S18)
and Ernst & Young Transaction Advisory Services Co., Ltd.(S-19 – S-25) in its project valuation reports as of June 30, 2021.

9

Asset List (2) – Operational Result for 8 th FP(in thousand yen)

Basic Rent

Variable Rent andOther Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
Expenses

Net Operating
Income after
Depreciation
ExpensesNo.

Project name

S-01

CS Shibushi-shi Power Plant

18,537

4,330

14,191

9,486

8,676

S-02

CS Isa-shi Power Plant

14,1684,106

11,808

7,837

6,465

S-03

CS Kasama-shi Power Plant

34,968

13,11121,01014,46327,069S-04

CS Isa-shi Dai-ni Power Plant

29,211

9,139

24,042

16,457

14,308S-05

CS Yusui-cho Power Plant

26,555

4,926

21,494

14,270

9,987

S-06

CS Isa-shi Dai-san Power Plant

35,333

9,647

28,76819,862

16,212

S-07

CS Kasama-shi Dai-ni Power Plant

34,543

14,274

26,387

17,60522,430S-08

CS Hiji-machi Power Plant

37,565

13,582

32,051

22,031

19,095

S-09

CS Ashikita-machi Power Plant

35,39011,66429,777

20,217

17,277

S-10

CS Minamishimabara-shi Power Plant(East & West)62,844

32,632

52,11535,33443,362

S-11

CS Minano-machi Power Plant

35,161

11,832

23,776

16,212

23,217

S-12

CS Kannami-cho Power Plant

19,446

10,093

15,145

9,663

14,395

S-13

CS Mashiki-machi Power Plant

657,876

313,694

489,624

338,234

481,945

S-14

CS Koriyama-shi Power Plant

8,004

4,149

6,139

4,191

6,014

S-15

CS Tsuyama-shi Power Plant

24,05312,365

19,812

13,085

16,606

S-16

CS Ena-shi Power Plant

26,133

12,67921,96014,51016,852

S-17

CS Daisen-cho Power Plant (A) (B)324,606

261,534

315,241

214,567

270,899

S-18

CS Takayama-shi Power Plant

10,964

5,009

9,928

5,496

6,045

S-19

CS Misato-machi Power Plant

15,2237,140

13,080

7,596

9,283

S-20

CS Marumori-machi Power Plant

32,22815,83329,971

17,05918,09010Asset List (2) – Operational Result for 8 th FP(in thousand yen)No.

Project name

Basic Rent

Variable Rent andOther Revenues

Rental Expenses(incl. depreciation
expenses)

Depreciation
Expenses

Net Operating
Income after
Depreciation
Expenses

S-21

CS Izu-shi Power Plant

155,031

95,230139,12287,776111,139

S-22

CS Ishikari Shinshinotsu-mura Power Plant

21,502

5,872

29,15812,493-1,785

S-23

CS Osaki-shi Kejonuma Power Plant

6,756

3,764

6,949

3,600

3,571

S-24

CS Hiji-machi Dai-ni Power Plant

626,680

140,791

356,766

301,768

410,705

S-25

CS Ogawara-machi Power Plant

76,701

38,313

43,16534,483

71,8492,369,478

1,055,709

1,781,480

1,258,296

1,643,706

Total

11

2. Major Topics

12Summary of Public Offering in March 2021
◼ The largest portfolio of JPY 80 Bn among the listed infrastructure funds after the public offering# ofProjects

Offering Format

Global Offering (Reg.S)

Units Offered

155,466 units

Total Offering AmountJPY 19,902,668,625

Issuer Price

JPY 125,115

Issuance Resolution Date /Delivery Date

February 17, 2021 /March 8, 2021

Sole Global Coordinator

Mizuho Securities Co., Ltd.

Domestic Joint Lead Managers,
Joint Bookrunners

Mizuho Securities Co., Ltd.
SMBC Nikko Securities Inc.

Total AcquisitionPrice

Total EstimatedValue

Total Panel
OutputLTV

123.0MW

55.5%

60.9MW-

183.9MW

52.9%<7th FP (ended December 2020)>

23¥49.40Bn¥48.89Bn<Assets acquired on March 8, 2021>

International Joint Lead Managers, Mizuho International plc
Joint Bookrunners
Macquarie Capital Limited

2¥30.59Bn¥31.32Bn<After acquisitions on March 8, 2021>

25¥80.00Bn¥80.21Bn(Note)

Note: LTV after the acquisitions was calculated based on the assumption that an early repayment being made for a
portion of the existing borrowings by the issuance of the investment corporation bonds on January 26, 2021, in
addition to an early repayment for a portion of the existing borrowings in connection to the acquisition of CS Izu-shi
Power Plant using the proceeds from this offering and / or cash on hand.

◼ Track Record of Consistent External Growth (acquisition price basis)
IPO acquisitions (Oct 2017)
CS Mashikimachi PP(100Mn yen)

1,000
800

First PO (Sep 2018)
CS Mashikimachi PP

Acquired 13 projects with
72.7MW total panel
outputAcquisitions (Mar 2021)
CS Hiji-machi
Dai-Ni PP

Acquired 3 projects with
30.3MW total panel
outputCS Ogawaramachi PP

2nd FP acquisitions

4th FP acquisitions

5th FP acquisitions

7th FP acquisitions

Acquired 2 projects with
2.5MW total panel output

Acquired 2 projects with
3.2MW total panel output

Acquired 1 project with
10.7MW total panel output

Acquired 2 projects with
3.3MW total panel output

上場時
2017年10月

IPO
Oct 2017

1,000

115.3

9.9
301.1

8.9

45.7

13.2
400

0

800.0
305.9

600

200

2 projects have beenacquired with 60.9MW
total panel output

311.0
第2期
（2018年6月）

2nd Fiscal Period(period-ending
June 2018)

426.3
第3期
（2018年12月）

3rd Fiscal Period(period-ending
December 2018)

439.5

第4期
（2019年6月）

4th Fiscal Period(period-ending
June 2019)

485.2

第5期
（2019年12月）

5th Fiscal Period(period-ending
December 2019)

485.2

第6期
（2020年6月）

6th Fiscal Period(period-ending
June 2020)

494.0

第7期
（2020年12月）

取得予定資産取得後

7th Fiscal Period 取得予定 Portfolio
取得予定
after
Acquisitions(period-ending
acquisitions
資産
資産取得後
December 2020)

Note: The medium-term target shown above is CSIF’s target as of June 30, 2021, and does neither represent a guarantee nor promise that the target will be achieved nor when it will
be achieved. CSIF’s asset size expansion is dependent on financing environment, development schedule of solar power plants in the sponsor pipeline, acquisition opportunities ofprojects outside of the sponsor pipeline, and negotiations with sellers. Hence, there is a possibility that the asset size target may not be achieved.

中期目標

Medium-termtarget (Note)13

Newly Acquired Assets in 8 th FP◼ Diversification of large assets has been proceeded by acquiring CS Hiji-machi Dai-ni Power Plant
S-24

CS Hiji-machi Dai-ni Power Plant
Project NameCS Hiji-machi Dai-ni Power Plant

Acquisition Date

March 8, 2021

Location

Hayami-gun, Oita

Operator

Canadian Solar Projects K.K.

O&M Servicer
EPC Servicer

Summaryof SpecificContractsArea

1,535,375㎡

Land Rights

Ownership, Lease-hold,
Easement

COD

October 31, 2019

Canadian Solar O&M Japan K.K.

FIT Expiration

October 30, 2039

A joint-venture between
Kyudenko Corporation andObayashi Road Corporation

Panel Type

Polycrystalline silicon

Panel Output

53,403.66kW

Output Capacity

44,000kW

Panel Manufacturer

Canadian Solar

Inverter
Manufacturer

TMEIC

Frame Structure

Pile foundation (Ramming
method)First Year Projected
Capacity Factor

13.69%

Area

121,300㎡

Land Rights

Surface Rights, Lease-hold,
Easement

COD

March 20, 2020

FIT Expiration

March 19, 2040

Panel Type

Polycrystalline silicon(bi-facial)

Panel Output

7,515.35kW

Output Capacity

7,500kW

Panel Manufacturer

Canadian Solar Group

Inverter
Manufacturer

Power Electronics

Frame Structure

Pile foundation (Cast-in
method)First Year Projected
Capacity Factor

13.46%

Power
Generation
Company

LOHAS ECE2 G.K.

Electric Power
Purchasing
Company

Kyushu Electric Power
Transmission and Distribution
Co., Inc.

Purchase Price

JPY40/kWhCurtailment Rule

Land

Facility

30 days

S-25 CS Ogawara-machi Power Plant
Project NameCS Ogawara-machi Power Plant

Acquisition Date

March 8, 2021

Location

Shibata-fun, Miyagi

Operator

Canadian Solar Projects K.K.

O&M Servicer

Canadian Solar O&M Japan K.K.

EPC Servicer

ETS Holdings Co., Ltd.

Summary ofSpecific
Contracts

Power Generation
Company

Tida Power 45 G.K.

Electric Power
Purchasing
Company

Tohoku Electric Power Network
Co., Inc.

Purchase Price

JPY32/kWhCurtailment Rule

Unlimited

Land

Facility

14

AUM Snapshot◼ A summary of AUM as of the end of 8 th FP. The fund has 25 power plants with total panel
output of 184 MW and the total acquisition price is approximately ¥80Bn, which maintains thelargest scale among the listed infrastructure funds<Portfolio as of the end of 8th FP>

25 projects

Total acquisition price asof the end of 8th FP¥80.00 Bn

183.9 MW

Total valuation price(Note)
as of the end of 8th FP¥79.03 Bn# of projects

Panel output of AUM(Note)“Price” refers to the median project valuation report amount, which is the estimated values provided to us by PricewaterhouseCoopers Sustainability LLC and
Ernst & Young Transaction Advisory Services Co., Ltd. in its project valuation reports as of June 30, 2021.

◼ Historical panel output of AUM◼ Historical valuation and book value (after depreciation)

200
180
160
140
120
100
80
60
40
72.7
20
（MW
0 ）

800
750
700
650
600
550
500
450
400
350
300

@ IPO

60.9

2.6

30.4

3.3

10.7

3.4

60.9

10.7
2.6

30.4
72.7

Acquired

Acquired

Acquired

Acquired

Acquired

Acquired

Total

3.4
3.3

Valuation price

500.2

470.9
359.6
338.6
304.4
@ IPO 2nd FP

Book value

420.7
311.1
3rd FP

426.7

4th FP

514.9
464.7

5th FP

790.3
752.7

495.8
455.7

6th FP

488.9
453.5

7th FP

8th FP

in 2nd FP in 3rd FP in 4th FP in 5th FP in 7th FP in 8th FP

15

Portfolio Diversification◼ Since the IPO, CSIF has reduced its concentration risk of projects under management byconsistently acquiring PV projects developed by the Sponsor.
◼ Aiming to build a portfolio to support stable cashflow with the remaining FIT period diversified.
◼

Decline in ratio of top-3 projects in the portfolio (panel output basis)
End of 7th Fiscal Periodended Dec. 31, 2020

At IPOEnd of 8th Fiscal Periodended Jun. 30, 2021

29.4%

40.7%
3.5%

65.6%
9.2%

5.4%
CS Mashiki-machi PP
CS Minami Shimabara-shi PP (east & west)
CS Hiji-machi PP

◼

15.1%
23.3%

CS Mashiki-machi PP
CS Daisen-cho PP (A & B)
CS Izu-shi PP

26.3%

CS Hiji-machi Dai-ni PP
CS Mashiki-machi PP
CS Daisen-cho PP (A & B)

Remaining FIT period of projects-under-management (panel output basis)
(MW)
100
80
60
40
20
0
2021

Projects reaching FIT expiration after 2034
¥40/kWh¥36/kWh¥32/kWh¥24/kWh¥21/kWh

6.1
0.9
2.3

49.0

53.4

FIT period: 13 years
1.2

6.3
11.9

2034

2035

3.0
1.7
2036

27.3
2037

12.9
2038

7.5
2039

2040

16

Unit Price Performance◼ After the one-time drop at the public offering in March 2021, CSIF’s unit price performance was
generally stable with linking to TSE listed Infrastructure Fund Index.
◼ Newly issued units at the public offering contributed to the increase in trading volume andimprovement of liquidity.
CSIF unit trading volume (right)(JPY)

CSIF unit price (left)

TSE Listed Infrastructure Fund Index (left)(Units)6000
16,000150,000

145,000
5000
15,000140,000
4000
135,000
130,000

3000

125,000
2000
120,000
1000
115,000
110,0000

2021年1月4日
January
4, 20212021年2月4日
February
4, 20212021年3月4日
March
4, 20212021年4月4日
April 4, 2021

May 4, 2021
2021年5月4日

June
4, 20212021年6月4日

Source: Tokyo Stock Exchange, Inc.
Note: TSE Listed Infrastructure Funds Index is benchmarked to CSIF’s closing price as of January 4, 2021 and shows the rate of decline since January 4, 2021.

17

Credit Rating and Issuance of Green Bonds◼ Upgraded for JCR’s rating and obtained R&I’s rating in the 7th FP◼ Maintained same rating at the JCR’s and R&I’s latest review in July and August respectively
RatingRating Agency

Japan Credit
Rating Agency,
Ltd.
Rating andInvestment
Information, Inc.

Subject to Rating

Renewal Date

Before
Review

After
Review

OutlookLong-term Issuer Rating

July 19, 2021

A

A

StableThe 1st Unsecured Investment
Corporation Bond (only for Qualified
Institutional Investors)

July 19, 2021

A

A

-

Long-term Issuer Rating

August 12, 2021

A-

A-

Stable◼ Issuance of the 1st public Green Bonds as the listed infrastructure funds
Issue Date

Offering Method

Issue Amount

Term

Interest
RateCreditRatingUse of Proceeds

January 26,
2021

Public offering

JPY 3.8 billion 5 years

0.80%

A (JCR)

Repayment of term loan

Based on the shelf registration, flexible financing are to be achieved by leveraging the
upgraded credit rating18

Debt Profile (1) – Summary of Loans and Bonds(As of June 30, 2021)

Category

Type

Initial amount Outstanding(yen millions) (yen millions)Interest rate

Interest
rate type

Drawdown
date

Maturity

Long-term

15,70013,188Base rate plus 0.45%(fixed at 0.845% upon executinginterest rate swap)

Fixed

31-Oct-2017

10 years from drawdown date
JCR Green Finance Evaluation

Long-term

8,000

6,995

Base rate plus 0.45%(fixed at 1.042% upon executinginterest rate swap)

Fixed

6-Sep-2018

10 years from drawdown date

Fixed

8-Mar-2021

10 years from drawdown date
JCR Green Finance Evaluation

Loan

Long-term

17,00016,607

Base rate plus 0.45%(fixed at 0.8199% upon
executinginterest rate swap)

Long-term

2,300

2,300

Base rate plus 0.20%

Variable

8-Mar-2021

Earlier of (i) March 8, 2023 or (ii)
first interest payment date after
the consumption tax refund date

Sub total of Loan

43,00038,476Long-term

1,100

1,100

0.71%

Fixed

6-Nov-2019

5 years from issuance dateLong-term

3,800

3,800

0.80%

Fixed

26-Jan2021

5 years from issuance date
JCR Green Bond Evaluation

Sub total of Bond

4,900

4,900

Total

47,90043,376Bond

19

Debt Profile (2) – LTV and Fixed-to-variable interest rate ratio◼ Adjusted LTV level by restructuring the debt after the public offering to keep comfortable levelof borrowing capability◼ Early repayment of variable interest rate loan by the issuance of bonds increased fixed-tovariable interest rate ratio. Continuing to operate stable financial strategy considering costeffectiveness and controlling interest rate risk
◼ LTV and Fixed-to-variable interest rate ratio
LTV (Note1)

Fixed-to-variable interest rate ratio (Note2)

As at end of December 2020

As at end of June 2021

55.52 ％

51.97 ％

As at end of December 2020

As at end of June 2021

78.41 ％

95.19 ％

7

(Note1) “LTV” are calculated without consumption tax bridge loan.
(Note2) “Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities at that time.
Variable interest rate liabilities that were converted to fixed interest rate liabilities through interest rate swap agreements were deemed as fixed interest rate liabilities.

◼ Historical LTV
60.00%

54.31%
55.00%

50.00%

55.52%
51.97%

53.74%
49.78%

51.58%

47.00%

45.00%

44.67%

40.00%@ IPO

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

20

Bank Formation■Stable Bank Formation with Shinsei Bank, 3 Maga Banks and Sumitomo Mitsui Trust Bankas the Arranger and Co-Arranger
The Bank of Nagoya, Ltd., 1.8% The Fukuho Bank, Ltd., 1.3%The Bank of Fukuoka, Ltd., 0.8%
The Bank of Saga, Ltd., 1.8%

San ju San Bank, Ltd., 0.4%

The Snshu Ikeda Bank, Ltd., 1.8%
The Tochigi Bank, Ltd., 1.9%
The Shonai Bank, Ltd., 1.9%

Shinsei Bank, Limited, 14.6%
Sumitomo Mitsui Banking Co., 12.7%

Orix Bank Corporation, 2.1%

Loan

The Ashikaga Bank, Ltd., 2.3%
The 77 Bank, Ltd., 2.7%

MUFG Bank, Ltd., 10.0%(¥38.4 Bn)

The Chugoku Bank, Ltd., 3.4%
Sumitomo Mitsui Trust Bank, Limited, 3.4%

Mizuho bank, Ltd., 8.2%

The Tottori Bank, Ltd., 3.6%
The Oita Bank, Ltd., 3.7%
Resona Bank, Ltd., 3.8%

The
Ashikaga
Bank, Ltd.

The
Chugoku
Bank, Ltd.

The Shonai
Bank, Ltd.

Hiroshima Bank, Ltd., 4.9% Asahi Shinkin Bank, 5.3%

The Oita
Bank, Ltd.

Hiroshima
Bank, Ltd.

Sumitomo
Mitsui
Banking Co.

The Nanto
Bank, Ltd.

Shinsei Bank,
Limited

MUFG Bank, Ltd.
The Senshu
Ikeda Bank,Ltd.

The Bank of
Nagoya, Ltd.

Asahi
ShinkinBank

The Bankof Fukuoka,
Ltd.

The Nanto Bank, Ltd., 7.8%

ResonaBank,
LimitedMizuho Bank,
Ltd.

Sumitomo Mitsui
Trust Bank, Limited.

San juSan Bank,Ltd.

The Tottori
Bank, Ltd.

The
FukuhoBank, Ltd.

(As of June 30, 2021)

The 77
Bank, Ltd.
Orix Bank
Corporation

The Bankof Saga,Ltd.

The Tochigi
Bank, Ltd.

21

Impact of Curtailment by Kyushu Electric Power◼ Data of past cases of curtailment and estimated impacts are showed below. Business forecast
for the future FP includes estimated impacts. (10 out of 25 portfolio assets are located in
Kyushu region)
No. of No. of days
days ofat CSIFFP
implemepower
ntationplants3rd

8

Current situation of curtailment and impacts on CSIF

12

◼ Kyushu Electric Power commenced curtailment in October 2018 in the 3rd FP.

4th

48

117

◼ In the 4th FP, despite the high frequency of curtailment from March to May, actual power generation exceeded
forecasted amounts. Hence, impact to CSIF’s performance was limited.
◼ No curtailments occurred after May 13 because inspections at the nuclear power plants commenced, andelectric power demand rose in summer.

5th

13

21

◼ In the 5th FP, the CSIF’s facilities were again subject to curtailment from October 13, 2019, but the impact
remained limited for the FP.

6th

7th

71

2

249

1

◼ In the 6th FP, the curtailment had seemed to have minor impacts in view of ongoing regular inspections of thenuclear power plants, measures against terrorist attacks.
◼ However, the impact of curtailment increased in the 6th FP due the increase of the number of PV power plants
in Kyushu region and decrease in electricity demand by the current situation with COVID-19◼ In the 7th FP, the curtailment had seemed to have minor impacts in view of ongoing regular inspections of thenuclear power plants and measures against terrorist attacks.
◼ Strong electricity demand in November and December 2020 due to cold weather.
◼ Since the measures against terrorist attacks and regular inspections of nuclear power plants in the region had
been completed and resumed operations, the number of days of curtailment implementation was more thanthat of the 6th FP.

8th

90

206

◼ For the power plants with online operation controller, the impact of curtailments were limited because thenumber of days of curtailment were less than offline plants and peak time basis curtailments were conducted.
◼ Actual variable rent reduction (vs forecast): JPY 320.42 million (9.47% of forecasted rental income)22

Onlinization Related to Curtailment■ Rationale behind installing online curtailment
controller■ Examples of CSIF’s online operation retrofitting
Installed Cyclic Data Transfer system designed to
manage power curtailment and to optimize output of
the entire power conditioner.

Transition from all-day curtailment to hourly curtailment ispossible through retrofitting for online operation.
Hours
出力制御 Offline output curtailment
subject
適用時間(all-day curtailment)
to curtailment

OutputOnline output curtailment(hourly curtailment)

CS Mashiki-machi PP

CS Minami Shimabara-shi
PP (east & west)

OutputFull day output curtailment
regardless of peak hours
7am 8am 9am10am11am12pm1pm 2pm 3pm 4pm 5pm

Curtailment limited
to peak hours onlyTime

7am 8am 9am10am11am12pm1pm 2pm 3pm 4pm 5pm

Time

Expect to increase power generation efficiency except
for curtailed hours as well as transitioning to hourly
curtailment instead of all-day curtailment

CSIF expects to reduce the negative impact of curtailment on its revenue by
installing a curtailment controller■ Promotion of installing curtailment controller
by Kyushu Electric Power Transmission andDistribution Co., Inc.
Under the new curtailment method to be implemented by
Kyushu Electric Power Transmission and Distribution Co.,
Inc. as of April 2021, curtailment duration in case of online
output curtailment compared to offline output curtailment
has been much reduced. Kyushu Electric Power
Transmission and Distribution Co., Inc. has announced its
policy to promote the installation of curtailment controllers.
(Both number of days and hours within the day are
reduced, so positive contribution to the fund’s power
generation is expected.)■ Depending on cost-effectiveness, installment of
the online output curtailment equipment to otherpower plants in Kyushu region is to be considered
TimingPower Plant- 7th FPCS Mashiki-machi PP

8th FPCS Shibushi-shi PP・CS Minamishimabara-shi PP (E)(W)

9th FP(planned)

Other power plants in Kyushu area

10th FP(planned)

CS Hiji-machi Dai-ni PP

23

ESG Initiatives (UN PRI / Wholesale Electricity Supply)◼ Signatory to UN PRI⚫

As of August 13, 2019, our asset manager, Canadian Solar Asset Management K.K. (“CSAM”), became thefirst Japanese asset manager of a listed infrastructure fund to be a signatory to the UN PRI (United Nations
supported Principles for Responsible Investment) to promote ESG (Environmental, Social, Governance)
investments.

⚫

The UN PRI sets the global standards for incorporating ESG factors into the decision-making process of asset
managers.

◼ CSAM’s approach on UN PRI⚫

As a signatory to the UN PRI, CSAM devised an “Approach to UN PRI Guidelines” as of the end of December
2020 as its basic ESG policy, which can be found on CSIF’s website as of February 17, 2021.

◼ Power sales to renewable energy users through a Wholesale Electricity Supply Agreementwith Minna-denryoku, Inc. and Zero Watt Power Inc.
⚫

By executing the wholesale electricity supply agreement with Minna-denryoku, Inc. and Zero Watt Power Inc for
CSIF’s power plants listed below, CSIF contributes to supply FIT electricity to consumers. With respect toelectricity consumption of CSIF’s power plants, purchase of clean energy derived from renewable sources havebeen started. CSIF believes that the fund contributes to the utilization of renewable energy.
Power Plant

Counter Party

Premium Wholesale

CS Marumori-machi PP

Minna-denryoku

From February 2021

Purchase of clean
energyFrom January 2021

Zero Watt Power

From February 2021
From Fall of 2021
From June 2021

From March 2021
From June 2021
From May 2021

CS Hiji-machi Dai-ni PP

From July 2021

From June 2021

CS Ogawara-machi PP

From May 2021

From July 2021

CS Izu-shi PP
CS Mashiki-machi PP
CS Daisen-cho PP (A)(B)24

ESG Initiatives (Green Finance)◼ CSIF devised a new Green Finance Framework which obtained a Green1(F) assessment from JCR,
the highest assessment rating as of May 11, 2020 and the rating is maintained.
JCR and Shinsei
Green Loan
Assessment
Latest acquisitions

Stakeholders

Reporting onfund allocation
andenvironmental
improvement

1 New borrowings(Green loan)

Shinsei Bank,
Limited, etc

IPO acquisitions

2

Borrowings(Green loan)

Financial
institutions

Acquisitions after IPO

3

Investment
corporation
bonds (Green bond)

Bond investors

Green1(highest JCR evaluation)

1

CSIF obtained Green 1(Green Bond/Loan) rating, the highest rating from JCR and Shinsei Green Loan Assessment
from Shinsei Bank, Limited, which is one of CSIF’s arranger banks, for its new borrowings of 17.0bn yen which wasallocated towards the latest acquisitions.

2 The borrowings amounting to 15.7bn yen which was allocated towards the funds for acquiring the acquisitions for the
IPO obtained a Green1 (the highest rating) assessment by JCR as of November 22, 2017, based on JCR’s evaluation of
the use of proceeds and CSIF’s management/operation/transparency. Also, after an annual review, the borrowings
continued to be assessed as Green1 as of February 13, 2020.

3

As of January 2021, CSIF issued a 5-year Green Bond of 3.8bn yen, which was given JCR Green1 assessment and theproceeds was used for the repayment of borrowings.
25

Government’s Proactive Stance for Carbon Neutrality◼ PM Suga in October of 2020 set a target to achieve zero greenhouse gas emissions by 2050 in his
general policy speech.
◼ New target “Reduction of greenhouse gas emissions by 46% compared to 2013 by 2030” wasexpressed in April 2021
◼ Disclosed the 6 th Basic Energy Plan (draft) in July 2021
◼ Energy mix in 2030; renewables:36-38% (previous target:22-24%), Nuclear:20-22％ (previous
target:20-22%), LNG:20% (previous target:27%), coal:19％ (previous target:26%), oil:2％(previous target:3%) was proposed. Breakdown of renewables; solar: app.15％, wind: app.6％,
geothermal: app.1％, hydro: app.10％, biomass: app.5%◼ Government goals to realize net carbon neutrality

The government under PM Suga’s leadership has announced its policies toaggressively achieve net carbon neutrality
Long-term goal to reducegreenhouse emissions

Pledge to maximize use ofrenewable energy sources

Zero greenhousegas emissions

Renewable energy to bepromoted as theby 2050

main power source
in Japan’s energy mix

Increase in renewableenergy within total energy mix
The Cabinet is likely to approve of the 6 th Basic Energy
Plan which shall decide the renewable energy in Octoberof 2021

Extensive utilization ofelectric cars

All newly soldpassenger cars to beelectric cars
by mid-2030

Increase electricity
supply to meet rising
electricity demand

Commence discussions
on carbon pricing rule

Actively devise
legislation on pricing
of carbon emissions
Promote use ofrenewable energy

Discussion and announcement of Green Growth Strategy
by the Council on Government Growth Strategy

Note: “Electric cars” refers to electric cars, fuel-cell vehicles, plug-in hybrid cars and hybrid cars. The same shall apply heretofore.

26

Main Points of the Revised Renewable Energy Act◼ Detailed rules and procedures were announced by combined meetings under the leadership of
Agency for Natural Resources and Energy (ANREA) in February of 2021.
◼ Cash Reserve System for PV Demolition Cost
Categories subject
to the cash reserve
systemCash reserve
methodAll PV operations with FIT/FIP certificates of more than 10kW
In principle, PV operators with FIT/FIP certificates put cash reserve for demolition cost on OCCTO bywithholding such cash reserve from incoming electricity revenue. Exceptionally, cash reserve within
PV operators shall be permitted under certain conditions

Cash reserve period For ten years prior to the end of the FIT period with a monthly frequency
Cash reserveamountFor accredited PV projects whose procurement prices have already been determined by FY2019, thereserve amount is the level of assumed costs for decommissioning, etc. in the procurement pricecalculation determined by the Procurement Price Calculation Committee◼ Market-linked FIP System
⚫
⚫
⚫

⚫

Market Price Benchmark: Adopted an area price with weighted-average prices on the Spot Market and Pre-Market
Frequency of Premium Distribution: One monthMarket Reference Term and Timing: A reference price on the JPEX shall be determined by “ Average Price for thePrevious Year + Monthly Adjusted Price (＝Monthly Average Price for the Current Year －Monthly Average Price for thePrevious Year”
Among the following items announced by ANREA are a) premium during the curtailment time, b) how to handle nonelectricity elements such as non-fossil value, c) how to handle FIP for the curtailment, d) balancing cost, e) rule on
aggregation business, f) requirements for a transfer of FIT to FIP, etc.

◼ Non-operational PV Project: Automatic Cancellation of FIT Certificate⚫
⚫

Shall judge the progress status such as application for grid connection work in one year after the operational deadline
in case of PV which has an operational deadline after April 1, 2022
Shall judge the progress status in one year after April 1, 2022 in case PV of which operational deadline isdelayed as of April 1, 2022

27

Discussions on Power Producer-Side Wheeling Charge◼ Discussions on Power Producer-side
To ensure that renewable energy power producers bear a portion of the costs for maintaining
and managing transmission and distribution facilities based on the amount of power generated,which is 10% of Consignment Charge••

A Summary of •the details ofWheeling Charge ••Wheeling charge is to be levied on kW and kWh basis (1:1) and a scope of kWh-based charge
and calculation method are under discussions
A discount on wheeling charge is under discussions
Wheeling charge shall be added to the wholesale price between power producers and retailers
under an amendment to the current agreement
There might be a possibility that a degree of decrease in Consignment Charge is lower than thatof Wheeling Charge in case of renewable energy with a lower capacity rate
ANREA’s committees will continue to discuss adjustment measures and scopes to operational PV
projects with a high FIT price◼ Scheme of Wheeling Charge
Wheeling
ChargePower
Producers

Consignment
ChargeGridoperators
10%

Utilities bill

Retailers

End Users

90%

Wheeling charge shall be properly added to the wholesale price.
28

3. Management Policy29

9 th, 10 th & 11th FP Business Forecast◼ Business Forecast
9th Fiscal Period(ending December 2021)

10th Fiscal Period(ending June 2022)

11th Fiscal Period(ending December 2022)

Statement of Income (million yen)
Operating revenue

3,740

3,704

3,722

Operating profit

1,471

1,391

1,405

Ordinary profit

1,246

1,174

1,187

Current net profit

1,245

1,173

1,187

DPU (incl. distributions in excess of earnings)

3,750 yen

3,750 yen

3,750 yen

DPU (excl. distributions in excess of earnings)

3,222 yen

3,036 yen

3,070 yen

528 yen714 yen

680 yenPer unit distributions in excess of earnings

Congruent with CSIF’s policy to maintain stable levels of distributions, projected DPU for the 9 th
– 11th FP is ¥3,750 which is increased by ¥50 from the 8 th FP. The increase is mainly due to theeffect of the assets acquisition in the 8 th FP.
(Note-1) Figures are rounded down to the nearest million yen.
(Note-2) Above forecasts are based on earnings summary dated August 13, 2021 and is subject to change due to factors including without limitation, acquisition or sale of renewableenergy projects, changes in infrastructure markets, fluctuation in interest rates and other changes in circumstances surrounding CSIF. Forecasts do not guarantee any
dividend amounts.

30

Historical and Forecasted Dividend◼ Realized stable dividend for the past 7 FPs since IPO◼ DPU forecast for the 9 th -11th FP is ¥3,750 with ¥50 increase from the 8 th FP. The acquisition ofassets in the 8 th FP will contribute to the increase◼ The fund aims to achieve a stable and sustainable distribution payout by utilizing distributions inexcess of earnings
（円）

4,000

3,600
3,500

3,650
577

3,000
2,500
2,000

3,650

3,700

3,700

708

601

2,992

3,099

6th FP

7th FP

3,700

3,750

3,750

3,750

528

714

680

3,036

3,070

9th FP

10th FP

11th FP(Forecast)(Forecast)(Forecast)

924

1,340
1,817

2,350
808
3,073

1,500

3,222
2,776

2,310

1,000

1,542

1,783

500
0

2nd FP

3rd FP

4th FP

5th FPDPU (excl. distributions in excess of earnings)

8th FPPer unit distributions in excess of earnings(Note) Figures for the 9th~11th Fiscal Period are forecasts and are subject to change. They do not represent guaranteed distribution amounts.

31

External Growth Strategy（Sponsor Pipeline）(the numbers are as of the end of Jun. 2021)◼ Target to achieve ¥100Bn in asset size in medium term by mainly acquiring assets fromabundant sponsor pipeline◼ Sponsor launched Japan Green Infrastructure Fund (JGIF) with a third-party investor. JGIF is
operated as the development fund of PV power plants and enables the sponsor group toaccelerate development activity. CSIF has first refusal right to acquire the projects which JGIF
owns.
Operational and underconstruction

11projects, 175.2MW

Under development

Total sponsor portfolio

19projects, 233.5MW

30projects, 408.7MW◼ Sponsor portfolio snapshot◼ Operational start year and status ofsponsor portfolio assets

FIT purchase price range: Mostly ¥32~¥40/kWh
Fully taking advantage of vertically-integrated modelto actively develop new projects with lower FIT price
By FIT price (panel output)
3.40
¥40
¥40

By size (per asset)
50MW -

289
810MW - 50MW

110.21122.225MW - 10MW
3

24.52

2MW - 5MW
- 2MW

114.97

33.43

¥36
¥36
¥32
¥32
\20
¥20 --\30¥30\13¥13 --\18
¥18

（MW）

450.0
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0

Operational

Under construction

Under development
408.7MW-- \13¥13

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

32

Sponsor Pipeline Map (incl. Projects Owned by JGIF)CS Tottori Daisen Dai-ni PP
1.9 MW/11.49/2024
CS Shimane Hamada PP
2.0 MW/21/2021
CS Hiroshi Fukuyama PP
3.4 MW/40/2020
CS Hiroshima Suzuhari PP
17.8 MW/17.97/2022

CS Yamaguchi Hofu PP
8.0 MW/14.25/2022

CS Gunma Minakami PP
20.0 MW/14/2023

CS Hokkaido Bihoro PP
2.5 MW/18/2021

CS Gunma Takasaki KG PP
24.5 MW/14.49/2022

CS Aomori Maita PP
3.0 MW/10.89/2024

CS Gunma CC PP
21.0 MW/11.99/2025

CS Miyagi Kami-machi PP
80.0 MW/10.76/2026

CS Gunma Minakami Dai-ni
PP 2.2 MW/18/2022

CS Miyagi Angel Land PP
9.2 MW/36/2020

CS Gifu Kamitakara PP
20.1 MW/21/2023

CS Fukushima Sabara PP
3.0 MW/10.79/2024

CS Yamaguchi Aiofutajima
PP 1.2 MW/18/2021

CS Azuma Kofuji PP
100.0 MW/36/2022

CS Fukuoka Saigawa PP
13.0 MW/36/2021

CS Tochigi Kitsuregawa PP
1.2 MW/32/2022

CS Fukuoka Tagawa PP
0.7 MW/18/2021

CS Ibaraki Kurusu PP
11.3 MW/24/2021

CS Oita Munechika PP
8.1 MW/32/2022
CS Kumamoto Mashiki Daini PP 1.2 MW/18/2022
CS Kumamoto Yamato PP
1.5 MW/32/2019● Operational

CS Higashikagawa PP
2.6 MW/18/2022
CS Higashikagawa Dai-ni PP
2.1 MW/18/2022
CS Okayama Shinyubara PP
30.0 MW/13.47/2024

Source: Compiled by the Asset Manager based on disclosures by Canadian Solar Projects K.K.

● Under construction● Under development
Lower row in eachbox ; size (MW)/ FIT
price in JPY/
anticipated COD

Gray box for JGIF’s
projects(as of June 30, 2021)

CS Ibaraki Takamihara PP
1.2 MW/11.99/2024
CS Ibaraki Kasama PP
13.5 MW/32/2021
CS Saitama Kumagaya PP
2.0 MW/18/2022

33

Appendix

34

Overview of Canadian Solar Group◼ Canadian Solar Group’s history
Founded in Ontario, Canada, 2001

◼ Canadian Solar Group’s Global Operations
Module and System solutions(MSS) segment：18 countries
Energy segment ：17 countries
Solar panel factory：4 countries (13 factories)

Listed on NASDAQ (CSIQ) in 2006
Entered the Japan market in 2009 and establishedproven track record for shipping PV modules

Approximately 14,000 employees globally(As of Dec. 31, 2020)
1
6
2

7

8

9 10

14

16

2

17

2
2
2

Presence in 22 countries/territories

11

3

13

5
4 67
3 1

19

15

18
20

Delivered solar panels amounting to over 55 GW total
capacity

4

21

22
12

5

Over 21 GW solar power plants are being built anddeveloped globally (incl. Recurrent Energy)
The manufacturer of the most “Bankable” (qualified as
lending subject) solar power module（by Bloomberg New Energy Finance 2020 Module Bankability Survey）

1 Canada
2 U.S.

3 Mexico
4 Brazil

2 offices
5 offices
1 office
2 offices

14 China
15 Taiwan

11 offices
1 office

1 office

16 Korea
17 Japan1 office

18 Thailand

1 office

1 office

19 Vietnam
20 Malaysia

1 office

5 Argentine 1 office
1 office
6 U.K.
7 Germany
8 Poland9 Spain
10 Italy

2 offices 21 Singapore1 office
11 UAE
12 South Africa1 office 22 Australia 4 offices
1 office
13 India

1 office

2 offices
6 offices

1 office

35

Canadian Solar Group’s Vertically-integrated Business Model
GrowthPV plant

Acquire PV
plants

Project owner

CS Mashiki-machi
Power Plant

Own and lease solar
energy projects

Canadian Solar Infrastructure Fund,
Inc.

ProvideO&M
services
PV plant
management

Lease PVfacilities
PV plantdevelopment

Module

Cell

Wafer

Ingot
SiliconCanadian Solar Group (incl. sponsor)

Developer
Canadian Solar Projects K.K.

O&M provider
Canadian Solar O&M Japan K.K.

36

Organizational Structure◼ Identical structure as a typical J-REIT◼ Our revenue is derived from rent income of solar energy projects
Canadian Solar Asset Management K.K.
Engaged in asset management in Canadian Solar
Infrastructure Fund, Inc.
⚫ Established in June 2016⚫

Canadian Solar Projects K.K. (Sponsor)(Sponsor / Operator)⚫ Engaged in construction and operation of solar
energy facilities⚫ Established in May 2014

Asset
Management
Agreement

AssetManagerSponsorSupportAgreement

Distributions

Investment
Corporation(Fund)

Provides O&M services to solar energy facilities
including our currently-owned projects⚫ Established in June 2016

Loan
Agreements

Lenders

Sponsor /Operator
O&M Service
Agreement

Solar Energy
Projects
Lease /
Purchase
Agreements

Sales of PV modules for use in residential andindustrial solar power systems⚫ Established in June 2009

Landowners

O&M

Lease / Operation
Agreement

Canadian Solar Japan K.K.
⚫

EquityEquityInterest

Canadian Solar O&M Japan K.K.
⚫

Investors

Asset Management
Service Agreements

LesseeOperator
SPC, etc.

Utilities
PPAs /
Interconnection
Agreements

37

ESG Initiatives: Environment◼ In consideration of the environment, CSIF and the Sponsor contributes to the utilization ofrenewable energy through renewable energy investments◼ Incorporate measures to reduce environmental impact from manufacturing solar panels⚫

The Canadian Solar Group is focused on reducing the environmental impact from solar panel manufacturing
processes such as greenhouse gases and manufacturing waste and water. (2017-2020)
Greenhouse gas emissions

Manufacturing water consumption

-18%

-44%

Energy consumption

Manufacturing waste

-19%

-18%

◼ Environmentally-conscious development and operation of CS Daisen-cho Power Plant⚫

Given that Mount Daisen located near CS Daisen-cho Power Plant owned by CSIF, is in close proximity to an
ecosystem rich with forests, plants and wild birds, the Sponsor made efforts to refrain from using chainsaws when developing the project to avoid damaging the habitat of rare species of indigenous falcons aswell as painting the fence around the site using camouflage colors.

38

ESG Initiatives: Social◼ Canadian Solar Group's relationship with local communities at Hiji-machi⚫

CSIF supported a local walking event (“Walking on Francis Xavier Road”) of Hiji town where CS Hiji-machi
Power Plant and CS Hiji-machi Dai-ni Power Plant located.

◼ Canadian Solar Group’s relationship with the local community around CS Daisen-cho⚫

The Sponsor constructed the Daisen Canadian Garden and donated it to the Daisen-cho Town Government incommemoration of the completion of CS Daisen-cho Power Plant, now owned by the CSIF after development,
and as part of its contribution to local communities in an effort to create harmony between nature and thelarge-scale solar power plant. In addition, it repaired the Hima Jinja Shrine in the same town and donated an
incense holder made of white granite to the Shimpukuji Temple.

Repaired the Hima Jinja Shrine

Donated an incense holder madeof white granite to Shimpukuji
TempleIn the Daisen Canadian Garden, there is a monument
created in the motif of the local mountain, Mt. Daisen.

◼ Donation to Marumori-machi, Igu-gun, Miyagi prefecture where CS Marumori-machi is located⚫

The sponsor and CSAM offered donations to the Marumori-machi Town Government. The town was
severely hit by Typhoon Hagibis in October 2019.
39

ESG Initiatives: Governance◼ Aligning the interest of unitholders with that of the Sponsor⚫

We aim to increase unitholders’ value by aligning the interest of unitholders with that of the sponsor.

Number of units held by the sponsor and holding ratio after the offering: 56,620 units （14.64%）◼ Decision-making Procedures for Asset Purchase and Transfer Transactions with Related Parties⚫

The Asset Manager has implemented measures in the Regulations for Related-Party Transactions to limit adverse effects
in connection with transactions with related parties such as Canadian Solar Group companies where conflicts of interest
are highly likely to emerge
Decision-Making Structure Concerning Transactions with Related Parties in connection with Asset Acquisitions and Transfers

Transactions with related parties(such transactions worth 5 billion yen or more)

Transactions with related parties(other transactions)

Drafting of asset acquisition and other plans by theInvestment Management Department

Drafting of asset acquisition and other plans by theInvestment Management Department

Approval by the Chief Compliance Officer(confirmation of the presence or absence ofcompliance problems including the state ofcompliance with laws and regulations)

Approval by the Chief Compliance Officer(confirmation of the presence or absence ofcompliance problems including the state ofcompliance with laws and regulations)

Deliberation and resolution by the Compliance
Committee
Deliberation and resolution by theInvestment Management Committee
Deliberation and resolution by the Board of
Directors of the Asset Manager
Approval by the Board of Directors of theInvestment Corporation and Agreement by theInvestment Corporation

Send proposal backRejection andsend proposal backRejection andsend proposal backRejection andsend proposal backRejection, disagreement
and send proposal backDeliberation and resolution by the Compliance
Committee
Deliberation and resolution by theInvestment Management Committee
Approval by the Board of Directors of theInvestment Corporation and Agreement by theInvestment Corporation

Send proposal backRejection andsend proposal backRejection andsend proposal backRejection, disagreement
and send proposal backReport to the Board of Directors of the AssetManager40

Status of Unitholders◼ Unitholding (as at period-ended June 2021)◼ By unitholding amount# ofInvestment
units:
386,656◼ By unitholders■Individuals / others
188,051 (48.63%)■Financial institutions
51,899 (13.42%)(incl. financial instruments firms)■Domestic Corporates
85,156 (22.02%)■Foreign entities & individuals 61,550 (15.91%)

Name

# of
Unitholders:
17,931■Individuals / others
17,461 (97.37%)■ Financial institutions
53 ( 0.29%)(incl. financial instruments firms)■ Domestic Corporates
315 ( 1.75%)■ Foreign entities & individuals 102 ( 0.56%)

Number of investment
units held (units)

Unitholding ratio to total
issued units (％)

1

Canadian Solar Projects K.K.

56,62014.64%

2

SSBTC CLIENT OMNIBUS ACCOUNT

10,774

2.78%

3

THE BANK OF NEW YORK

8,221

2.12%

4

THE BANK OF NEW YORK MELLON

7,593

1.96%

5

UBS AG LONDON A/C IPB SEGREGATED CLIENT ACCOUNT

7,015

1.81%

6

The Rokinren Bank

6,536

1.69%

7

JP MORGAN CHASE BANK

5,795

1.49%

8

The Bank of Fukuoka, Ltd.

5,000

1.29%

9

GOLDMAN SACHS BANK EUROPE SE

4,410

1.14%

10

The Master Trust Bank of Japan, Ltd. (Trust Account)

4,404

1.13%

116,368

30.09%

Total(Note): Unitholding ratio is rounded down to the nearest hundredth.

41Balance Sheet for 8 th FP◼ 8 th Fiscal Period (ended June 2021)◼ Assets(in thousands of yen)

Current assets
Cash and bank deposit
Operating accounts receivable

4,611,954
1,006,913

Accounts receivable

75,459Prepaid expenses

135,464

Consumption tax receivable

2,511,791

Other current assets
Total current assets

10,2008,351,783

Fixed assets

Total fixed assets
Deferred assets
Investment corporation bond issuance cost
Total deferred assets

Property and equipment

Total assets

Structures
Accumulated depreciation
Total structures (net)
Machinery and equipment
Accumulated depreciation
Total machinery and equipment (net)
Tools, equipment and supplies
Accumulated depreciation
Total tools, equipment and supplies (net)Land

1,048,112△128,066
920,046
42,436,866△5,589,346
36,847,519
590,890△78,859
512,0314,505,944

Construction in progress
Structures in trust
Accumulated depreciation
Total structures in trust (net)
Machinery and equipment in trust
Accumulated depreciation
Total machinery and equipment in trust (net)
Tools, equipment and supplies in trust
Accumulated depreciation
Total tools, equipment and supplies in trust (net)Land in trust
Total property and equipment

6,559,095△77,626
6,481,469
20,260,404△281,261
19,979,143
93,540△1,27692,264
4,771,145
74,115,945

6,380

Intangible assets
Leasehold rights
SoftwareTotal intangible assets

Investments and other assets
Long-term prepaid expenses
Capital investments
Deferred tax asset
Long-term deposits
Guarantee deposits
Total investments and other assets

1,156,098
1,173
1,157,272◼ Liabilities and Net Assets

597,40210
12
15,60037,790650,81575,924,033
23,261
23,261
84,299,078(in thousands of yen)

Current liabilities
Operating accounts payable
Long-term borrowings to be repaid within 1 year
Accounts payable
Accrued expenses
Income taxes payable
Consumption taxes payable
Deposits received
Total current liabilities

79,8372,270,023
298,657
112,830860
23,95915,0902,801,259

Fixed liabilities
Investment corporation bondLong-term borrowings
Total fixed liabilities
Total liabilities
Unitholders’ equity
Unitholders’ capital
Amount deducted from Unitholders’ capital
Unitholders’ capital (net)
Surplus
Unappropriated retained earnings(accumulated deficit)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

4,900,000
36,206,482
41,106,482
43,907,741
40,631,004△1,313,100
39,317,904
1,073,432
1,073,432
40,391,337
40,391,337
84,299,078

42

Statement of Income for 8 th FP◼ 8 th Fiscal Period (ended June 2021)(in thousands of yen)
Operating revenues
Rental revenues

3,425,186

Total operating revenue

3,425,186

Operating expenses
Rental expenses of renewable energy projects

1,781,479

Asset management fee

88,086

Administrative service fees

23,437

Director’s compensation

2,400

Tax and dues

2,204

Other operating expenses

68,534

Total operating expenses

1,966,142

Operating profit

1,459,043

Non-operating income
Interest income
Insurance proceeds
Interest on refund
Other non-operating income
Total non-operating income

35
79,272
33
11,61590,957

Non-operating expenses
Interest expenses

147,299

Interest expenses on investment corporation bond

16,782

Amortization of investment corporation bondissuance expenses

2,514

Borrowing-related expenses

212,847

Investment unit issuance expenses

72,734

Loss on retirement of fixed assets
Total non-operating expenses

475,809

23,630Ordinary income

1,074,191

Income before income taxes

1,074,191

Income taxes
Income tax adjustments
Total income taxes
Net income
Profits brought forward
Unappropriated retained earnings(accumulated deficit)

866
0
867
1,073,324
108
1,073,432

43

Portfolio Assets (1)S-01 CS Shibushi-shi
Power Plant 1.2MW

S-02 CS Isa-shi
Power Plant 0.9MW

S-03 CS Kasama-shi
Power Plant 2.1MW

S-04 CS Isa-shi Dai-niPower Plant 2.0MW

S-05 CS Yusui-cho
Power Plant 1.7MW

S-06 CS Isa-shi Dai-sanPower Plant 2.2MW

S-07 CS Kasama-shi Dai-niPower Plant 2.1MW

S-08 CS Hiji-machi
Power Plant 2.6MW

S-09 CS Ashikita-machi
Power Plant 2.3MW

S-10 CS Minami Shimabara-shi
Power Plant(East & West) 3.9MW

S-11 CS Minano-machi
Power Plant 2.4MW

S-12 CS Kannami-cho
Power Plant 1.3MW

S-13 CS Mashiki-machi
Power Plant 47.7MW

S-14 CS Koriyama-shi
Power Plant 0.6MW

S-15 CS Tsuyama-shi
Power Plant 2.0MW

44

Portfolio Assets (2)S-19 CS Misato-machi
Power Plant 1.1MW

S-16 CS Ena-shi
Power Plant 2.1MW

S-17 CS Daisen-choPower Plant (A&B) 27.3MW

S-18 CS Takayama-shi
Power Plant 1.0MW

S-21 CS Izu-shi
Power Plant 10.7MW

S-22 CS Ishikari
Shinshinotsu-muraPower Plant 2.3MW

S-23 CS Osaki-shi Kejonuma S-24 CS Hiji-machi Dai-ni
S-25 CS Ogawara-machi
Power Plant 0.9MW
Power Plant 53.4MW
Power Plant 7.5MW

S-20 CS Marumori-machi
Power Plant 2.2MW

45

Leasing Structure based on Basic and Valuable rent
◼ Calculation method of basic rent and variable rent in anticipated projects to be acquired
Basic rentMonthly projected energy output (P50) ×(100－Y)% × 70% × FIT purchase price

Variable rent(Monthly actual energy output × (100－Y)% × FIT purchase price) － Basic rent

⚫ Even if actual energy output is lower than projected energy output (P50), the operator will be able to receive basic rent from lessee⚫ If actual energy output exceeds 70% of projected energy output (P50), possible to obtain variable rent

◼ Diagram of rent structure
Projected revenue from sales of electricity(before deducting lessee’s operating costs
and operator compensation)
×Y％

Projected energy output (P50)
×FIT purchase price

Rental income of Canadian Solar
Infrastructure Fund, Inc.

Projected energy output (P50)
×FIT purchase price×(100-Y)%

Variable rent

Projected energy output (P50)
×FIT purchase price × X%
×Y％Projected energy output (P50)
×FIT purchase price × X%
×(100-Y)%

Basic rent

Projected energy
output (P50)×X%

Projected energy
output (P50)

Note-1: Projected energy output (P50) is monthly predicted solar
energy output in lease term as described in technical reportNote-2: Y is percentage based on lessee’s operation cost and operator
compensation
Note-3: Negative variable rent is regarded as zero

Actual energy output

46

Stable and Balanced Cash Flow Distribution Policy
Supported by FIT System◼ Cash distributions to CSIF’s unitholders for each fiscal period are calculated by multiplying theresidual free cash flow (“NCF”), which refers to free cash flow (“FCF”) minus debt interest
payments, by a fixed ratio, which is determined by CSIF for each fiscal period.
◼ Image of distribution in excess of earnings
Expenses ofleasingbusiness

Expenses ofleasingbusiness
Capitalexpenditure
Debt interest
Total rental
revenues

Debt interest
FCF made by
renewable energy facilities

Use forreinvestment

Debt
repayment
Retainedearnings
Residual FCF(NCF)

Revenue

Expenses

Residual FCF
×a fixed ratio

Cashdistribution

Distribution

Up to 60%of depreciation

Depreciation

Distribution inexcess of
earnings

Distribution
from profit

Net income

Breakdown

P/L

Note: The chart above is presented solely to facilitate a general understanding of the mechanism for cash distributions, and does not represent the ratio of our rental revenues or cash distributions inexcess of retained earnings. CSIF may decide not to make any amount of cash distributions in excess of retained earnings for a particular fiscal period, based on a consideration of factors such as
economic or renewable energy market conditions or financial conditions, among other factors, after taking into account of our financial situation and alternative uses of cash, such as the execution of
repair plans and capital expenditures, the repayment of borrowings and project acquisition opportunities. We may, in place of making cash distributions in excess of retained earnings, decide toacquire our own units.

47

Characteristics of PV Plant Revenue◼ Forecastability of earning stability on a long-term basis⚫ FIT price and FIT period of our PV plants are binding in accordance with the Feed-in-Tariff system. Moreover, giventhat our assets-under-management are set up so that we can capture basic rent from the lessee, we assume that any
decline in rent income won’t exceed a certain limit.
⚫ Given that expenses on depreciable assets are largely fixed, earnings forecasts can be realistically projected for the
long-term.

◼ Dynamics of PV plant revenue during FIT period

AmountOperatingrevenues

Operating revenues generally decrease gradually over the
medium to long term due to expected degradation of PV
modules.

Operatingexpenses

Depreciable asset tax, a large expense component,
decreases due to a straight-line-based depreciation, so
operating expenses generally decrease gradually over the
medium to long term, under the assumption that expenses
other than taxes on depreciable assets be largely fixed(including assumed regular maintenance costs).

Operating revenues
Operating expenses

Net income
Non-operating expenses

Amortization payments of loan principal and interest rates
that are partially fixed generally cause non-operating
Non-operating expenses to decrease gradually over the medium to longexpensesterm given typical amortization schedules, as thesepayments are the primary component of nonoperating
expenses.

Time
Note: The chart above is presented solely to facilitate a general understanding of the theory management considers in approaching the business of solar energy projects during the FIT period term. The chart assumes thecontinuous operations of solar energy projects during the FIT period term under normalized conditions, with no extraordinary events, including additional acquisitions or dispositions of projects, or expenses or changes in theoperating or regulatory environment. Actual results may vary significantly depending on the particular features and circumstances of infrastructure funds, as well as unexpected events or changes or the realization of various
risks. You should not rely on this model to predict the outcome of our operating revenues, operating expenses, non-operating expenses or net income.

48

History of CSIF
Date

Event

April 21, 2017

Notification on incorporation of the Investment Corporation by the organizer (Canadian Solar Asset Management K.K.) in
accordance with Article 69, Paragraph 1 of the Investment Trust Law

May 18, 2017

Registration of incorporation of the Investment Corporation in accordance with Article 166 of the Investment Trust Law,
Company Incorporation

May 25, 2017

Application for registration of the Investment Corporation in accordance with Article 188 of the Investment Trust Law

June 9, 2017

Prime Minister's approval of registration of the Investment Corporation in accordance with Article 187 of the Investment
Trust Law (Kanto Regional Finance Bureau Director-General Registration No. 127)

October 30, 2017

Listing on Tokyo Stock Exchange (Securities Code:9284)
Acquisition of 13 power plants (AUM: 13 power plants, total acquisition price JPY30.4Bn and total panel output 72.7MW)

February 1, 2018

Acquisition of 2 power plants (AUM: 15 power plants, total acquisition price JPY31.4Bn and total panel output 75.2MW)

September 6, 2018

Follow-on Offering
Acquisition of 3 power plants (AUM: 18 power plants, total acquisition price JPY42.9Bn and total panel output 105.6MW)

March 1, 2019

Acquisition of 1 power plants (AUM: 19 power plants, total acquisition price JPY43.3Bn and total panel output 106.7MW)

March 29, 2019

Acquisition of 1 power plants (AUM: 20 power plants, total acquisition price JPY44.2Bn and total panel output 108.9MW)

November 29, 2019

Acquisition of 1 power plants (AUM: 21 power plants, total acquisition price JPY48.8Bn and total panel output 119.7MW)

September 28, 2020

Acquisition of 2 power plants (AUM: 23 power plants, total acquisition price JPY49.7Bn and total panel output 123.0MW)

March 8, 2021

Follow-on Offering
Acquisition of 2 power plants (AUM: 25 power plants, total acquisition price JPY80.0Bn and total panel output 183.9MW)

49

Outlook on Japan’s Renewable Energy Mix
Ratio of renewable energy with total energy mix⚫ According to the proposed 6th Basic Energy Plan, the government plans to set the share of renewable energy as the top source ofenergy. Also, it seeks to double the ratio of renewable energy (compared to FY2019) by FY2030; somewhere between 36~38% of thetotal energy mix.
⚫ Solar power is expected to compose 15% of the total renewable energy mix, which is the highest amongst all other renewable sources.
Renewable Energy

Nuclear

LNG

Coal

Fossil fuel

Other

OutputApprox. 1.024Tr kWhApprox. 1.065Tr kWhApprox. 930~940Bn
kWh

100%

7%

3%

80%

1%
2%
19%

32%

26%

Biomass 5%

20%

60%

Solar 15%27%
20%~22%

40%

37%

20%

6%
18%

22%~24%FY2019ActualCurrent FY2030
target0%

FY2030 new renewable power
output target

Hydro 10%20%~22%
36%~38%
New FY2030 target
under 6th Basic Energy Plan

Geothermal 1%

Wind 6%

Breakdown of renewable energy sources⚫ As of March 2020, the installed capacity of solar power is the highest among all other renewable sources, and it is expected that
installed capacity of solar will continue increasing.
SourceInstalled capacity(March 2020)

Installed capacity(FY2030 target)

ChangeSolar

55.8GW

100.0GW+44.2GW

Onshore wind

4.2GW

15.9GW+11.7GW

Offshore wind

0.01GW

3.7GW+3.69GW

Geothermal

0.6GW

1.5GW

+0.9GW

Hydro

50.0GW

50.7GW+0.7GW

Biomass

4.5GW

8.0GW

+3.5GW

Total output

Approx. 187.6Bn kWhApprox. 312.6Bn kWhApprox. ＋125Bn kWh

The government intends to add 20~40Bn
kWh in installed capacity for renewableenergy in order to achieve a 46% reduction
in greenhouse gas emissions by 2030

Source: Compiled by the asset manager based on disclosures by METI, Agency for Natural Resources and Energy, Advisory Committee for Natural Resources and Energy,
and the Strategic Policy Committee

50

Disclaimer• This document has been prepared to provide information, and is not for soliciting and inviting investments in orrecommending transaction of certain products. We request investors to make investments with their own
responsibility and judgment.
• This document does not constitute a disclosure document or a management report based on the Financial
Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations or the listing regulationsof the Tokyo Stock Exchange.
• In addition to information on Canadian Solar Infrastructure Fund, Inc. (the "Investment Corporation"), this document
includes figures, tables and data prepared by Canadian Solar Asset Management K.K. (the "Asset Manager") based ondata/index and other information released by third parties. Analysis, judgment and other views of the Asset Manager
on such information at the time of preparation are also included in this document.
• The information contained in this document is not audited and there is no assurance of the accuracy and certainty ofsuch information. Analysis, judgment and other non-factual views of the Asset Manager represent views of the AssetManager at this point in time. Different views may exist or the Asset Manager may change its views in the future.
• Figures under the same items of other disclosed materials may differ from figures presented in this document due todifference in the rounding of fractions, etc.
• While the Investment Corporation takes reasonable care in the preparation of this document, there may be errors.
Readers are also cautioned that the contents of this document may be corrected or changed without prior notice.
• The Investment Corporation and the Asset Manager assume no responsibility for the accuracy of data, indexes andother information released by third parties.
• This document includes statements regarding future policies, etc. of the Investment Corporation. However, thesestatements do not guarantee said future policies, etc.
• For the convenience of preparing graphs, the dates indicated herein may differ from actual business dates.

51